Saco City Council votes to return 31% of Park North TIF revenues to general fund

In the heart of Saco City Hall, a pivotal discussion unfolded as the City Council convened on May 12, 2025, to address the future of the Park North Municipal Development and Tax Increment Financing (TIF) District. The atmosphere was charged with anticipation as Councilor Gunn introduced a resolution aimed at reducing the captured vent value percentages, a move that could significantly impact the city's financial landscape.

The council's deliberations revealed a pressing concern: the potential increase in property tax rates if a portion of the taxes paid on the captured assessed values were redirected into the TIF district. The proposed resolution seeks to return approximately 31% of the TIF revenues—around $880,000—for the fiscal year 2026 to the city's general fund. This decision is rooted in the need to allocate taxpayer dollars more effectively, allowing funds to be utilized for projects beyond the current approved costs associated with the TIF district.

Currently, the city captures 100% of the increased assessed value within the Park North district, with 30% of the TIF revenues deposited into a project cost subaccount. The resolution aims to lower this percentage, transferring a significant portion back to the general fund, which could provide much-needed resources for other city initiatives.

As the council members weighed the implications of this resolution, they acknowledged the importance of maintaining a balance between funding district projects and addressing broader community needs. The council retains the authority to adjust the percentage of TIF revenues allocated to the project cost subaccount in the future, ensuring flexibility in response to changing financial circumstances.

The meeting concluded with a clear directive for the city administrator to notify the Department of Economic and Creative Development about the proposed reduction in TIF revenue allocation. This decision marks a significant step in Saco's ongoing efforts to manage its financial resources wisely, reflecting a commitment to both development and the well-being of its residents. As the city moves forward, the implications of this resolution will undoubtedly resonate throughout the community, shaping the fiscal landscape for years to come.